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EU explores account freezes to prevent runs at failing banks
Reuters ^ | JULY 28, 2017 | Francesco Guarascio

Posted on 07/29/2017 8:45:08 AM PDT by george76

European Union states are considering measures which would allow them to temporarily stop people withdrawing money from their accounts to prevent bank runs

...

The move is aimed at helping rescue lenders that are deemed failing or likely to fail, but critics say it could hit confidence and might even hasten withdrawals at the first rumors of a bank being in trouble.

The proposal, which has been in the works since the beginning of this year, comes less than two months after a run on deposits at Banco Popular contributed to the collapse of the Spanish lender.

It also come amid a bitter wrangle among European countries over how to deal with troubled banks, roughly a decade after a financial crash that required the European Central Bank to print billions of euros to prevent a prolonged economic slump.

...

Existing EU rules allow a two-day suspension of some payouts by failing banks, but the moratorium does not include deposits.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; Germany; Government; News/Current Events; United Kingdom
KEYWORDS: bankruns; banks; eu; eubanks; europe; europeanunion; failing; failingbanks; freezeaccounts; toobigtofail

1 posted on 07/29/2017 8:45:08 AM PDT by george76
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To: george76

Just wait until we are in a post currency world.


2 posted on 07/29/2017 9:13:55 AM PDT by AlaskaErik (I served and protected my country for 31 years. Progressives spent that time trying to destroy it.)
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To: AlaskaErik

One can hardly wait.


3 posted on 07/29/2017 9:18:40 AM PDT by BipolarBob (I bought a house on a one-way street that's also a dead end and now I can't leave.)
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To: george76

we already have this rule in USA (but its not used much because even discussing it, more or less actually using it, can cause runs on banks...banks to fail...so instead the Fed just reliquifies a failing or cash-starved bank as quietly as possible...to prevent any depositor or public panic)


4 posted on 07/29/2017 9:52:58 AM PDT by faithhopecharity ("Politicans are not born, they're excreted." -- Marcus Tillius Cicero)
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To: george76

It’s not “to prevent bank runs.” It’s to prevent people from taking their money, and to allow the government to take it.

That plus a cashless society, and it’s a leftist paradise. Oh you who are so foolish as to work for a living - the government will leave some money in your account, as much as it thinks you “need”, and take the rest and put it in the EBT cards of the indolent parasites who voted for this sort of thing.


5 posted on 07/29/2017 10:09:30 AM PDT by I want the USA back (If free speech is taken away, dumb and silent we are led, like sheep to the slaughter: G Washington)
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To: george76

Spot gold is up about $20/oz in the last 48 hours.


6 posted on 07/29/2017 10:24:17 AM PDT by Steely Tom (Liberals think in propaganda)
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To: AlaskaErik

Is George Soros behind this?


7 posted on 07/29/2017 10:28:17 AM PDT by GOPJ (To totalitarians an open inquisitive mind is more dangerous than a Marine with a rifle James Mattis)
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To: george76

The EU needs to address why bank runs are a concern.


8 posted on 07/29/2017 10:28:40 AM PDT by SaxxonWoods (CNN IS ISIS.t)
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To: george76

Doing to bank deposits what the UK did to Charlie Gard.


9 posted on 07/29/2017 10:47:10 AM PDT by sphinx
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To: SaxxonWoods

Especially because these govts are in control of the money throttle already and can cause shortages or excesses just by affecting credit and interest rates. Ie they have their own Fed just like we do.


10 posted on 07/29/2017 10:58:42 AM PDT by Secret Agent Man ( Gone Galt; Not averse to Going Bronson.)
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To: george76

Go Brexit.

If the EU does something stupid in banking. All the money goes to a Brexit bank OUTSIDE the EU. Unintended consequence 101.

The EU will tell EU corporations they can’t do that. So the EU corporations will move their home office to a non-EU, non-stupid country.

Load up on popcorn for this event.


11 posted on 07/29/2017 2:20:17 PM PDT by spintreebob
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